2004 (12) TMI 469 - AT - Central Excise

Summary

Issues:
Non-compliance with stay order for depositing Central Excise duty, Applicability of Sick Industrial Companies Act on requirement of pre-deposit under Section 35F of Central Excise Act, Dismissal of appeal for non-compliance with Section 35F provisions.

Analysis:
The case involved M/s. Surya Industrial Corporation directed by the Tribunal to deposit a sum of Rs. 50,000 out of the total demand of Central Excise duty and penalty imposed on them. The applicants filed a miscellaneous application for modification of the stay order, citing their sick and non-working unit registered under the Sick Industrial Companies Act. However, on multiple occasions, no one appeared on behalf of the applicants, leading to a hearing where only the Respondent's representative was present.

Upon review, the Tribunal found that the applicants had not established a prima facie case as they had sold the tyres without cutting them, thus directing a partial deposit as required by Section 35F of the Central Excise Act. The Tribunal clarified that registration under the BIFR does not exempt the obligation to deposit the entire duty and penalty before appealing, citing the Supreme Court's decision in Metal Box India Ltd. v. CCE, Mumbai, which outlined the limited scope of relief under Section 22 of the Sick Industries Act.

In light of the Supreme Court's ruling, the Tribunal rejected the miscellaneous application, emphasizing that pre-deposit under Section 35F is not covered by the exemptions in Section 22 of the Sick Industries Act. Consequently, due to non-compliance with the stay order, the appeal was dismissed. However, the appellants were granted the opportunity to seek restoration of the appeal by depositing the required amount within four weeks from the judgment date.